RENTAL INCOME

[RAINBOW10]

Hi
I am a Australian resident with a british passport. I pay tax on my working income in Australia. do I need to pay tax in the uk on my rental income which is £14,400 per annum without any deductions. I pay over £2000 in management fees and have maintenance and mortgage to pay off. so my income comes down to around £7000

[maths]

As the income is UK source it is subject to UK income tax. It needs to be declared.

Depending upon the figures you may not in fact have any chargeable income but, as you are a non-UK resident landlord, your tenant/managing agent is under an obligation to withhold income tax at 20% which you would then need to reclaim. To avoid this you need to file to participate in the Non-Residnet Landlord Scheme.

[RAINBOW10]

THANKS

does it matter when you apply for the non resident landlord scheme? I have been away for 3 years?

[maths]

No, although normally to avoid the tenant/agent deducting tax at source from the rents landlord's will apply before rents start to be paid. HMRC then inform the tenant/agent not to deduct tax at source and you file a Tax Return as normal.

[darthblingbling]

You should file a tax return anyway if you are being withheld tax at source, as a letting agent is NOT allowed to consider your personal allowance when working out what tax to pay to HMRC.

Also HMRC do request that non residents with rental income from UK property do file